Zinc prices recovered from lows as the market was waiting to hear more on Donald Trump's plans for the U.S. economy. U.S. infrastructure spending is not widely expected to be a game-changer for industrial metals demand. China, which accounts for around half of global demand for industrial metals, will remain the main focus this year. Its Lunar New Year holiday starting Jan. 27 is expected to subdue demand and manufacturing activity this month and next as factories close, sometimes for two to three weeks. Combined zinc inventories in Shanghai, Tianjin and Guangdong added 13,400 to 229,800 tonnes this past week. Inventories in the three regions increased for three weeks in a row. Arriving shipments were more than outward shipments. The worldwide zinc market has recorded deficit during January to November last year. It must be noted that the zinc market had ended in surplus in the whole of 2015. As per WBMS data, the global zinc market recorded deficit of 190 kt during the initial eleven months of the previous year from January to November. It should be noted that the worldwide zinc market had reported a surplus of 101 kt during the entire year 2015. Global refined zinc production witnessed decline of 2.5% during the initial eleven-month period of 2016. The Chinese production of locally refined zinc increased marginally by nearly 1.2% when compared with 2015. Technically market is under long liquidation as market has witnessed drop in open interest by -4.74% to settled at 5567 while prices down -0.05 rupee, now Zinc is getting support at 184.8 and below same could see a test of 182.4 level, And resistance is now likely to be seen at 188.8, a move above could see prices testing 190.4.

Trading Ideas:

Zinc trading range for the day is 182.4-190.4.

Zinc prices recovered from lows as the market was waiting to hear more on Donald Trump's plans for the U.S. economy

As per WBMS data, the global zinc market recorded deficit of 190 kt during the initial eleven months of the previous year.

Combined zinc inventories in Shanghai, Tianjin and Guangdong added 13,400 to 229,800 tonnes this past week.